Light crude oil was hit especially hard Wednesday, and the Energy Information Administration (EIA) data didn't help matters. As you'll recall, Tuesday evening's report from the American Petroleum Institute (API) showed a significantly larger build in crude stocks than analysts were expecting. And Wednesday's EIA report simply confirmed those bearish figures.
While intermediate timeframe participants may want to remain on the sidelines until the price action supports moving back into the market on the long side, day traders would be wise to maintain a more bearish posture as long as the May crude contract is closing beneath the five-day exponential moving average (approximately $40.70) .
A reader asked whether Goldman Sachs (GS) would ever bust out of its current range, and while I have no doubt the stock will eventually break one way or the other, I don't currently see a reason to guess which way that will be. The bottom line is that bullish momentum builds above $159-$160, while the bears take control under $150. If I had to point to a silver lining, it would be that price is continuing to hold above the 50-day simple moving average (thus giving bulls a slight advantage).
With equity markets closed on Friday and many schools on Spring Break next week, I'd expect overall trading volumes to remain subdued.
Any trading or volume profile-related questions can be posted in the comments section below, emailed to me at firstname.lastname@example.org or posted to my twitter feed @ByrneRWS